European Factors to Watch-Higher start eyed, Thyssen to rally

LONDON May 13 (Reuters) - European shares were set to rise at the open on
Tuesday, with key regional indexes on track to test recent peaks, as a rally in
U.S. shares and upbeat updates from blue-chips such as steelmaker ThyssenKrupp
supported risk appetite.

The Dow and the S&P 500 closed at record highs on Monday and the Nasdaq
rallied as shares of Internet and biotech companies advanced. Asian shares also
rose, led by Indian equities on hopes of an election victory for the
business-friendly opposition party.

Germany's ThyssenKrupp raised its full-year earnings outlook on
Tuesday, while aerospace group Airbus Group posted a
narrower-than-expected drop in core earnings and reaffirmed its financial goals
for the year.

ThyssenKrupp's shares were indicated to open 3.2 percent higher.

Renewed signs of brisk mergers-and-acquisitions activity may also provide
some support. U.S. drugmaker Pfizer kept up the pressure on bid target
AstraZeneca on Tuesday, saying its offer represented compelling value
for a company which would otherwise face challenges as a standalone firm.

Pfizer is planning to return with a higher bid for AstraZeneca before the
U.S. drugmaker considers going hostile, Bloomberg reported late on Monday,
citing people familiar with the matter.

Investors were set to focus on the ZEW monthly poll of German investor and
analyst sentiment, due at 0900 GMT and expected to show a slight improvement in
current conditions and a slight deterioration in sentiment. U.S. retail sales at
1230 GMT may also affect market direction later in the session.

The CAC was 0.3 percent away from an all-time high of 4,507, which it hit
last week, while the FTSE was just 0.2 percent off its high for the year at
6,867. The Dax's all-time high, set in January, was nearly 1 percent above
current levels.
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